Which factor does not affect the elasticity of demand for a good?
(A) The importance of the good to the consumer.
(B) The availability of substitute goods.
(C) The consumer's perception of the good as necessity or luxury.
(D) An increase in population.
Ans: (D) An increase in population.
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If a bond pays the same coupon payment forever without a maturity, it is known as a
A) perpetuity. B) forever bond. C) discount bond. D) consolidated bond.
A firm whose price is below its average cost:
a. is earning negative economic profit. b. is earning positive economic profit. c. is just breaking even. d. is earning zero economic profit. e. is earning zero accounting profit.
The demand for airline pilots results from the demand for air travel. This fact is an example of:
A. resource substitutability. B. rising marginal resource cost. C. elasticity of resource demand. D. the derived demand for labor.
The supply curve shows the relationship between the
A. price of the product and quantity supplied. B. quantity demanded and the quantity supplied. C. cost of production and the price of the product. D. cost of resources and cost of production.